Joint Development Agreement

[Prasenjit Pal]

Joint Development Agreement was executed between landowner and builder for construction of a residential building ( commercial area exceeds 15% of total capet area) on 31.08.2019. Since then neither construction was started nor commencement certificate was obtained till date. Wheather any GST was payable by virtue of that JDA executed before 01.04.2019 and if applicable wheather as per new scheme as applicable from 01.04.2019 or as per old scheme ?

AI Summary

GST Applies to Joint Development Agreements Post-April 2019; Check Dates and Compliance for Correct Tax Liability. A query was raised regarding the applicability of Goods and Services Tax (GST) on a Joint Development Agreement (JDA) executed between a landowner and a builder on August 31, 2019, for constructing a residential building with a commercial area exceeding 15% of the total carpet area. The question concerned whether GST was payable given that construction had not started, and no commencement certificate was obtained. The response clarified that since the JDA was executed after April 1, 2019, the new GST scheme applies, and liability can be paid up until the completion date. The responder also suggested re-checking the JDA date for accuracy.